Malaysia's GDP growth surprises as recovery accelerates

Malaysia's economy expanded faster than initially estimated in the first quarter, driven by private spending and a rebound in exports.

Gross domestic product (GDP) quickened 4.2 per cent in the January-March period, said Malaysia's central bank and statistics department in a joint briefing on May 17.

That is higher than the 3.9 per cent advance estimate, as well as the median forecast in a Bloomberg survey. On a quarter-on-quarter basis, the economy grew 1.4 per cent from the previous three months.

While strong services sector and manufacturing output helped drive the economy, a better than previously expected out-turn in farm and construction segments contributed to lifting overall growth.

Forward-looking indicators point to continued growth for the Malaysian economy, Bank Negara Malaysia governor Abdul Rasheed Ghaffour said in the briefing in Kuala Lumpur. He expects consumer spending to improve, aided by higher income levels, sound balance sheets and support from the government.